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Business expenses from IR35 income

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    Business expenses from IR35 income

    Hi everyone,

    I have a couple of questions in regards to running my own limited company and working on contracts inside IR35.

    Can income generated from contracts inside IR35 be used to:

    1) pay the employer NIC
    2) pay business expenses (e.g. website, custom e-mail addresses, etc.)

    Also, a payment of £10 for a personal expense was made out of the business account by accident. What's the best way to resolve this? Do I even have to?

    Thank you

    #2
    These are pretty basic questions, you know, and some very basic gaps in your knowledge...

    However:

    1. There are no expenses inside IR35.

    2. Employers' NICs are not an expense. Either they are paid out of your gross income if you have a private sector client, or if you have a public sector client (or after April 6th this year anyway) they are the clients ' costs since you will be paid personally net of all taxes.

    3. If you have paid money in error, pay it back. You and YourCo are two entirely separate legal persons. Never mix them up.

    But I suggest you take a read of the guides on the right of the page, how much else don't you know?
    Blog? What blog...?

    Comment


      #3
      Just typing expenses inside IR35 in Google brings back a raft of articles mirroring the simple message Mal says.

      The first article from QDOS answers the OPs question alone.

      Which expenses can contractors claim when working inside IR35?

      Time for the OP to do some very quick reading.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by omicron View Post
        Hi everyone,

        I have a couple of questions in regards to running my own limited company and working on contracts inside IR35.

        Can income generated from contracts inside IR35 be used to:

        1) pay the employer NIC
        2) pay business expenses (e.g. website, custom e-mail addresses, etc.)

        Also, a payment of £10 for a personal expense was made out of the business account by accident. What's the best way to resolve this? Do I even have to?

        Thank you
        Your question is why many companies have stopped using PSC's (might as well use the term now).

        See above replies, otherwise...

        1) Employer NIC is paid by the umbrella from your day rate before you see anything.
        2) Of course you can pay expenses - from your salary the your Umbrella put into your personal bank account after taxes and commission have been taken out.

        HTH.
        "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
        - Voltaire/Benjamin Franklin/Anne Frank...

        Comment


          #5
          OP has done a lot of reading. OP must be stupid.

          Anyway, thank you for the answers.

          Comment


            #6
            Our pleasure!
            "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
            - Voltaire/Benjamin Franklin/Anne Frank...

            Comment

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